More than £70m of agricultural bare land and equipped farms were transacted by regional firm George F White (GFW) during 2013 with average values for bare land deals handled by the firm reported at £6,904, according to its recent research.
This was on the back of a survey from the Royal Institution of Chartered Surveyors and Royal Agricultural University (Rics/RAU) which reported opinion-based prices of bare land in the North East at approximately £7,000, and a report from Knight Frank claiming an average for England at £6,882 per acre.
GFW director of research Claire Bainbridge said: “It’s clear that land prices in the North East are gaining momentum and the region is holding its own with the increase in land values.
“With the Rics/RAU survey showing a 9% increase in the North East over the second half of the year, the impact of a limited supply of good farmland is taking hold.
“It will be one of the reasons for the large number of deals which have been conducted privately by the firm. More than 65% of the agricultural bare land and equipped farms transacted by George F White were done privately and, more significantly, 98% of bare arable land transactions were handled privately.”
Her colleague Michael Bell from GFW’s Alnwick office, added: “Often clients want to handle deals off market to remove some of the pressure of selling, to keep an element of control as well as the potential for a premium price over market value.
“With good-quality land in short supply, and increased demand from within and outside the region by not only farmers but also a significant number of investor clients, it’s easy to understand why certain land types are increasing in value throughout the region.”